Question

Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials$5.25 Direct labor$3.90 Variable manufacturing overhead$1.40 Fixed manufacturing overhead $7,200 Sales commissions$1.80 Variable administrative expense$0.30 Fixed selling and administrative expense $6,600 For financial reporting purposes, the total amount of period costs incurred to sell 4,500 units is closest to: Multiple Choice $16,050 $9,450 $6,600 $7,200

Answer 1

Answer:

$16,050

Explanation:

The computation of the total amount of the period cost is shown below:

= Sales commission per unit × number of units sold + Fixed selling and administrative expense + Variable administrative expense per unit  × number of units sold

= $1.80 × 4,500 units + $6,600 + $0.30 × 4,500 units

= $8,100 + $6,600 + $1,350

= $16,050